diff --git a/src/Text.cpp b/src/Text.cpp
index fad29a7459..1da59db4c8 100644
--- a/src/Text.cpp
+++ b/src/Text.cpp
@@ -1644,13 +1644,9 @@ bool Text::dissolveInset(Cursor & cur)
 
 	if (!plist.empty()) {
 		// see bug 7319
-		// we clear the cache so that we won't get conflicts with labels
-		// that get pasted into the buffer. we should update this before
-		// its being empty matters. if not (i.e., if we encounter bugs),
-		// then this should instead be:
-		//	  cur.buffer().updateBuffer();
-		// but we'll try the cheaper solution here.
-		cur.buffer()->clearReferenceCache();
+		// we need to update here since we need to refresh
+		// the reference cache.
+		cur.buffer()->updateBuffer();
 
 		// ERT paragraphs have the Language latex_language.
 		// This is invalid outside of ERT, so we need to
diff --git a/status.20x b/status.20x
index c64fe20fef..062921ca79 100644
--- a/status.20x
+++ b/status.20x
@@ -81,6 +81,8 @@ What's new
 - Restore the functionality of the TeX Information dialog on Cygwin if a
   native Windows TeX engine is used.
 
+- Correct erroneous report of duplicate labels when dissolving insets (#7319).
+
 
 * DOCUMENTATION AND LOCALIZATION